Meta: AI Is Working, But The $279 Billion Bill Just Arrived

Meta Platforms earns a Buy rating at $648, with a 2029 valuation target of $920 based on normalized EPS of $46 and a 20x multiple. AI-driven advertising improvements have delivered measurable gains, but the investment thesis now hinges on capital efficiency and free cash flow normalization post-2028. META's aggressive infrastructure build has shifted from discretionary to long-term commitments, increasing fixed costs and downside risk if utilization or ad revenue falters.